Science & Technology
Tesla and SpaceX Announce Terafab Chip Factory in Texas
The companies have confirmed plans for a $16.8 billion chip manufacturing site in Grimes County, Texas, set to be the largest in the world.
Tesla and SpaceX have announced plans to build their semiconductor manufacturing facility, named Terafab, in Grimes County, Texas, approximately an hour northwest of Houston. The initial investment for this project is reported to be around $16.8 billion, marking a significant step in the companies' semiconductor production capabilities.
The Terafab site is expected to cover more than 100 million square feet, which the companies are stating will make it the largest chip manufacturing facility globally. This development follows months of speculation regarding the location and scale of the project, which was first hinted at by Elon Musk earlier this year.
According to reports, the Terafab facility will produce chips intended for data centers operated by SpaceX and its AI subsidiary, xAI. Notably, the manufacturing operations will reportedly rely on natural gas power plants rather than Tesla solar panels for energy.